Rigetti Computing (RGTI), a key player in the quantum computing industry, has formed a strategic partnership with Quanta Computer, a global leader in computer hardware manufacturing. This collaboration, backed by a $35 million private placement from Quanta and a total planned investment of $100 million spread over five years, has the potential to accelerate Rigetti’s progress in superconducting quantum computing. While Rigetti remains a high-risk stock with no clear timeline for profitability, this partnership could shift investors’ sentiment by improving technological scalability and strengthening the company’s market position.
A Boost in Manufacturing and Scalability
One of the biggest challenges for quantum computing companies is transitioning from research and development to large-scale, commercially viable production. Rigetti has been working toward this goal with its full-stack quantum solutions, but manufacturing quantum processors remains costly and complex. By partnering with Quanta Computer, a company known for its expertise in large-scale hardware production, Rigetti gains access to advanced manufacturing capabilities that could make its quantum systems more efficient, reliable, and scalable.
Quanta’s expertise in high-performance computing and classical hardware integration is also crucial. As quantum computing continues to evolve, seamlessly integrating quantum and classical systems will be critical for real-world applications. Quanta’s involvement may help Rigetti develop more robust hybrid quantum-classical computing solutions, improving performance and expanding use cases across industries.
Accelerating Commercialization and Market Reach
Beyond technology, the partnership provides Rigetti access to Quanta’s global market reach. While Rigetti has primarily operated in the research and enterprise space, Quanta’s established relationships in the tech industry could open doors to new customers and commercialization opportunities. This could be particularly significant in sectors like pharmaceuticals, finance, and logistics, where quantum computing has the potential to drive breakthroughs.
Additionally, the partnership’s financial component strengthens Rigetti’s cash position, extending its runway for research and development. With a high cash burn rate and no immediate path to profitability, this added funding reduces the pressure for near-term capital raises and potential share dilution.
Shifting Investor Sentiment Amidst High Risk
Due to its early-stage development and high valuation, Rigetti’s stock has been viewed as speculative. However, this partnership signals confidence in Rigetti’s technology, which could positively affect the market’s sentiment toward the volatile stock. While profitability remains uncertain, collaborating with Quanta provides a strategic advantage that may help Rigetti move closer to commercial success.
Is Rigetti a Good Stock to Buy?
According to Wall Street analysts, Rigetti Computing is considered a Strong Buy. The average price target for RGTI stock is $14.80, which implies a 41.22% upside potential.
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